Too tightly wound to unravel

We’re learning a bit more about the “unprecedented powers” that President Obama and Sec. Treas. Geithner are seeking to deal with instability that exists in the financial system. But to understand what’s needed going forward, it’s important to see how we got here.
In the 1920s, commercial banks were selling stocks to their customers in addition [...]

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When do we get the regulations?

Perhaps I’m just impatient.  Perhaps Treasury needs to staff up first.   But rather than trying to figure out “legal” ways to restrict salaries and bonuses for the folks in companies getting public bailout funds, I’d much rather see Congress work on re-regulating the system.  Sure, it doesn’t fuel populist anger like taxing bonuses does, but [...]

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And the “let them eat cake” awards keep coming

Today it’s Vikram Pandit of Citibank’s turn, and he gets a “twofer.”  Mr. Pandit announced recently that Citibank has turned around and begun to show a profit.  And he talked proudly of how he was being responsible and taking a much lower salary of only $1 million.  Great, we thought, now he can start repaying [...]

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A solution to the AIG bonus outrage

For the purposes of argument, let’s accept current AIG CEO Liddy’s argument that the company is contractually bound to pay out the bonuses AND that their employees are the brightest bulbs in the pack — the only ones who can unwind the esoteric financial instruments that sent them into the financial toilet.  Yes, it’s a [...]

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Another “let them eat cake” award

The latest award goes to Ken Lewis, CEO of Bank of America.  Despite taking billions in federal TARP funds, he is refusing to reveal what he knows about the $3.6 billion that went to Merrill Lynch senior staff (some 700 people) on the eve of his institution taking over the failing investment bank.  Not only [...]

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Ongoing stimulus debate

A commenter suggested that the funds allocated to the American Recovery and Reinvestment Act (aka the stimulus package) would be better spent by handing out checks to each person.  The final package comes to a bit less than $800billion or just under $2300 per person, not the $25,000 suggested in the comment.   The commenter also [...]

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Country First? I wonder… UPDATED

Last time I wrote that tax cuts are relatively ineffective in stimulating the economy.  That’s especially true for tax cuts targeted at the top rungs of the economic ladder.   Over the weekend, the Congressional Budget Office released the following chart showing the stimulative effect of various aspects of the proposed recovery package.
Direct purchase of goods [...]

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How many more job losses will we see?

The numbers are in.  The US economy lost just under 600,000 jobs in January.  Combined with revised job numbers for November and December, our economy has shed nearly 1.8 million jobs in the past three months alone, following on the heels of negative job growth (now isn’t that an interesting term of art!) going back [...]

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Message to the GOP

The GOP just doesn’t get it.  So, let me explain a few things to you.

Tax cuts are meaningless if you don’t have a job, or you don’t make enough to reach the threshold for paying taxes.
You complain that 40% of Americans don’t pay taxes. Why?  Is it because they don’t make enough? Or is [...]

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Super Sunday

The chili is done and ready for the cook-off, and we’re still trying to decide how to juggle two party invitations.  It’s rather amusing as neither of us are football fans.  We’ll be watching the Super Bowl with millions of other Americans, but we focus on the commercials, not the game.
So, how about you?  Will/did [...]

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